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Govt urged to act tough on bank NPAs

Our Bureau

THIRUVANANTHAPURAM, May 20

THE Government should put in place tough measures to bring down the non-performing assets (NPAs) of the public sector banks, according to Mr Y. Tharak Nath, General Secretary, National Confederation of Bank Employees.

Mr Tharak Nath, here in connection with the general council meeting of the State Banks' Staff Union, Kerala and Chennai circles, told presspersons that as much as 14 per cent of the advances of the public sector banks, amounting to Rs 53,000 crore, had b ecome NPA as on March 31, 2000. Of this, Rs 40,000 crore was accounted for by big borrowers and large corporate houses.

He said the confederation had suggested overhauling of banking laws to make recovery easier. The other suggestions in this direction included attachment of personal properties of the defaulting borrowers, declaring willful default a criminal offence and publication of the list of defaulters of Rs 10 lakh and above.

Mr Tharak Nath said more than a lakh bank employees had gone out under the voluntary retirement scheme (VRS). In State Bank of India alone, 23,423 employees had opted for VRS and this had put pressure on the remaining staff. The VRS had led to deteriorat ion in customer services and affected accounting efficiency and recovery procedures at almost all the branches.

He expressed concern over the attempts to introduce contract labour system and apprenticeship in the banking sector. The other worrying developments were the Government decision to reduce its equity holdings in public sector banks and the proposals to am end labour laws and the Industrial Disputes Act.

The State Banks' Staff Union is holding here its 31st general council meeting of the Chennai circle and the first council meeting of the newly-formed Kerala Circle.

The meetings will adopt as many as 64 resolutions, according to Mr V.G. Sidhardhan, General Secretary of the union for the Kerala Circle.